The Colombian government has implemented Decree No. 175, a tax measure that removes the VAT exemption for online gambling, subjecting deposits to a 19% value-added tax (VAT). The regulation, which takes effect on February 21, 2025, applies to all player deposits, regardless of payment method, including cash, bank transfers, and cryptocurrency. VAT Implementation and Industry Concerns Under the new system, the taxable base is determined by dividing the deposited amount by 1.19. For example, a $100 deposit would incur approximately $16 in VAT, leaving around $84 for actual gameplay. Operators will be responsible for collecting and submitting the tax, with non-compliance potentially resulting in prison sentences ranging from 48 to 108 months and administrative sanctions. Despite government assurances, concerns remain among industry stakeholders. No transition period has been provided, leaving operators scrambling to update their gaming systems and obtain recertification. Colombian gaming law mandates regulatory approval for system changes, meaning operators risk violating the law if they start collecting the… Read More

Category: News 

Source: Casino News Daily